Mexican Legal Framework of Business Insolvency - White & Case

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voluntary restructuring negotiations and expedited reorganization proceedings are used. These
proceedings can provide a cost-efficient means of resolving a debtor’s financial difficulties…. 53
Prepackaged concurso proceedings avoid the visit stage and allow the debtor to request
that the judge implement injunctive relief upon accepting the petition [LCM 340, 341].
The debtor may file for prepackaged concurso proceedings, inter alia, if the petition is
signed by the debtor and creditors representing at least 40 percent of its outstanding
debt, and if the petition is accompanied by a proposed plan, also signed by the debtor
and creditors representing at least 40 percent of its outstanding debt [LCM 339].
If a debtor files a prepackaged concurso proceeding, it will not need to establish that
it is insolvent (but will need to declare that its insolvency is imminent) and there is no
need for the appointment of a visitor [LCM 339-III, 341].
The conciliator must take into consideration the proposed plan when preparing the
restructuring plan [LCM 342].
16. Liquidation
The type of proceeding referred to as “liquidation” is regulated by the insolvency law and
generally provides for a public authority (typically, although not necessarily, a judicial court
acting through a person appointed for the purpose) to take charge of the debtor’s assets,
with a view to terminating the commercial activity of the debtor, transforming non-monetary
assets into monetary form and subsequently distributing the proceeds of sale or realization of
the assets proportionately to creditors. Although generally requiring the sale or realization of
assets to occur in a piecemeal manner as quickly as possible, some insolvency laws permit
liquidation to involve the sale of the business in productive units or as a going concern…. 54
53 UNCITRAL (2005), pp. 238-239.
54
UNCITRAL (2005), p. 30.